Structured Settlement Blog

Structured Settlement Calculator

Thank you for visiting today to find more information on using a structured settlement calculator. As we all know knowledge is power when it comes to getting the best deal on your structured settlement payments. Whether you have lump sum payments, monthly payments or annual payments that are due to you in the future, it is a good idea to get a calculation of what your payments are worth today. So how does a structured settlement calculator work?

How Does a Structured Settlement Calculator Work?

The calculator is simple and complex all wrapped into one program. The characteristics of the calculator that you need to know, to get a quote, is that the calculator will determine the amount of each individual payment separately. This is called the present value of future payments. What does that mean? Well, each payment is set at a different period in the future, so each structured settlement payment has its own value. For example, I think we can all agree that the payment that is due next month is worth a lot more than a payment that is scheduled to be paid in 2020. The payment due to be paid next month is discounted for one month, whereas the payment that is due in 2020 is discounted roughly eighty-four times. An easier way to look at how the calculator works is to compare it to something we all generally know, which is how we earn interest on our own money.

1) Let’s say for example you have $1,000 to put into an investment that will earn 10% annually. Then in one month you would have $1,010. If you let that same $1,000 grow until 2020, then you would have roughly $2,000. So to understand what you would received today for your future payments, you would look at the opposite of investing your money.

2) So instead, say you have $2,000 due to you by an annuity company like New York Life, then you could receive roughly $1,000 today for that payment by selling the structured settlement payment to Mainstreet Funding.

These examples represent some rough numbers for how a structured settlement calculator would determine the value of the payments. The calculator actually looks at each payment based upon the timing of the each payment and then adds up each payment that you choose to sell to come up with the aggregate you would receive for those payments.

If you would like aFree No-Obligation Quote, please contact one of our friendly and knowledgeable structured settlement representatives at1-877-919-8003.

How Do I Use The Structured Settlement Calculator?

You should keep in mind when entering your information into the calculator that the first line represents the future payment that you are due. So far example, if you have a lump sum in 10 years, you would reflect the payment in box 1. In box 2 enter the annual interest rate. In box 3, make sure to enter 12 for the number of times interest is compounded each year. Finally, enter the number of years until the payment is due and then hit calculate. If you have multiple payments you would want to enter each separately and then add up the present value of each payment.

The Second Option to Get Your Quotes

The second and probably the easiest is to give our structured settlement team a call at 1-877-919-8003 and you can provide your team member the payments that you would like to sell and our staff will work with you to get you your quotes. Our team is trained to exceed your expectations, which means we will patiently work with you to provide you as many quotes as you want. Our team wants you to be completely happy and knowledgeable when you choose to sell your payments or if you even if you are just curious as to what the structured settlement payments are worth.